1st Jun 2005 14:25
For immediate announcement 1st June 2005 United Business Media completes sale of NOP World for ‚£383m Set for ‚£300m Special Dividend with Share Consolidation United Business Media plc ("UBM") announces that it has completed the sale ofits market research business, NOP World, to GfK Aktiengesellschaft ("GfK"), for‚£383 million in cash. The disposal agreement was announced on 15 April 2005.Earlier this year, UBM announced a review of strategic options for NOP World. Anumber of third parties expressed their interest in acquiring NOP World and theBoard concluded that the sale of NOP World to GfK would maximise value for UBMshareholders.UBM intends to return ‚£300m of the proceeds to shareholders - all of it by wayof a special dividend of approximately 90p per share. In order to maintaincomparability of the UBM share price and earnings and dividend per share beforeand after the payment of the special dividend, the Board intends to seekshareholder approval to implement a consolidation of UBM's issued ordinaryshare capital.A circular will be posted to shareholders with details of the proposed returnof funds and to convene the necessary EGM. Subject to shareholder approval, thespecial dividend and consolidation should be completed by the end of June.David Levin, Chief Executive Officer of UBM, said: "I am delighted with theachievement of this excellent result, enabling us to make a substantial capitalreturn to shareholders and creating a more focused UBM which can continue todevelop its global publishing and events interests."NOP World is a leading provider of both syndicated and custom primary researchand consulting support services. During the year to 31 December 2004, NOP Worldgenerated ‚£222.9 million of turnover (2003: ‚£203.9 million), ‚£20.1 million ofprofit before interest, tax and amortisation (2003: ‚£19.3 million) and ‚£7.9million of profit before interest and tax (2003: ‚£4.9 million). At 31 December2004, NOP World had net operating assets of ‚£80.2 million.The consideration of ‚£383 million is stated on a debt/cash free basis and issubject to an adjustment to reflect the level of working capital at completion.Dresdner Kleinwort Wasserstein Limited and Allen & Company LLC acted asfinancial advisers to UBM on this disposal.For further information please contact:For United Business Media enquiries:Michael Waring United Business Media + 44 20 7921 5031 Colin Browne The Maitland Consultancy + 44 20 7379 5151 This press release includes statements which are not historical facts and areconsidered "forward-looking" within the meaning of Section 27 of the SecuritiesAct of 1933, as amended. These forward-looking statements reflect UBM's currentviews about future events, business and growth strategy and financialperformance. These forward-looking statements are identified by their use ofterms and phrases such as "believe," "expect," "plan," "anticipate," "ontarget" and similar expressions identifying forward-looking statements.Investors should not rely on forward-looking statements because they aresubject to a variety of risks, uncertainties and other factors that could causeactual results to differ materially from UBM's expectations. UBM expressly doesnot undertake any duty to update forward-looking statements. Management doesnot attempt to update forecasts unless conditions materially change.ENDUNITED BUSINESS MEDIA PLCRelated Shares:
UBM